The globalization of tourism services is forcing hoteliers to look for different ways to develop and strengthen their role in the tourism business chain. One of the methods to increase the competitiveness of hotels in Ukraine is the conclusion of franchising agreements. The franchising model has been known to us for a long time, but many people still have no idea what it is and how it works. In this article we will tell you how a hotel franchise works..
What is a hotel franchise?
Franchising in the hotel business – this is a form of cooperation between a hotel chain (franchisor) and hotel owner or investor (franchisee). Each party has a franchising model, of course, there are obligations to another.
The franchisor must provide the franchisee with a name and logo, as well as the opportunity to use trademarks of a popular brand. This is the basis of the franchise, meaning, that the hotel will henceforth operate as part of the chain, but will still remain independent. Besides, the franchisor is obliged to share his know-how, accumulated over many years of work in the hotel business, and provide brand standards, marketing guidelines, as well as all tools and documents, necessary for its functioning.
There are also many responsibilities on the part of the franchisee..
- Firstly – the owner of the hotel or the investor of the building under construction is required to sign a franchising agreement with the hotel chain, if he even wants to use this business model.
- Once the terms are agreed upon and the relevant documents are signed, the franchisee must use the franchisor's trademark and conduct business in accordance with the guidelines, included in the know-how provided to him.
- The franchisee is also required to use internal tools, provided by the brand, that, among other things, ensure effective communication and appropriate documentation.
- Each franchisee also undertakes to maintain a good name, brand image and reputation, which he represents.
If you are looking for an opportunity to invest profitably in real estate, в Ribas Hotels Group will help you buy a hotel franchise. Thanks to the company, you will not only be able to quickly launch a business, but also to minimize your risks.
Hotel franchise in Ukraine – How is it different from franchises in other countries??
Contrary to appearance, franchising in the hotel business is not so popular here, as, eg, in case of grocery stores. This is due to the fact, that a large hotel is much more difficult to manage, than a small store, especially in a situation, when you need to represent a large recognizable brand. The hotel franchising system is based on the same principles, as in other countries, there are practically no exceptions here.
Regarding the state of the hotel franchise in Ukraine, Here it is worth noting the domestic company Ribas Hotels Group, which works successfully with 202 of the year. Also, many foreign companies want to gain a foothold in our market., but not everyone succeeds. Companies leading among the largest hotel franchisors are:, using the logos of the InterContinental Hotels Group BLC chain from the UK, hotels Mariott International from the USA and Hilton Worldwide also from the USA. Of course, in addition to the top three, Many other hotel brands are investing in our country, but the three presented have the greatest influence.
How view – hotel franchise – a difficult way to stand out and make money. Competition in the hotel market in our country is enormous, which in many cases is of great importance.
